Data Center Investment Startup IPI Partners Buys DigiPlex

The data center market is continuing to see investments by private equity and investment firms, with the latest being IPI Partners’ acquisition of data center provider DigiPlex.


Fast-growing data center investment and platform startup IPI Partners is continuing its global data center expansion march with the purchase of DigiPlex in a move to boost the company’s customer reach focused on hyperscalers and large colocation providers.

Founded in 2016, IPI is quickly building one of the world’s top privately held data center portfolios focused on serving the need of hyperscalers such as Amazon Web Services, Microsoft and Google as well as major colocation providers and large enterprises. The Chicago-based company has raised over $5.25 billion in total equity capital commitments over the past five years.

Earlier this year, IPI Partners also acquired Milan-based data center colocation provider Supernap Italia. IPI specializes in acquiring, developing, leasing and operating digital infrastructure assets to serve large technology companies on a global basis.

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The data center M&A market continues to grow rapidly each year due in part to investments by private equity firms along with hyperscalers pouring billions into building new or expanding their data center footprints.

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Just last month, global investment firm Blackstone Group unveiled the largest data center acquisition in history with the $10 billion purchase of data center provider QTS Realty Trust. Blackstone’s acquisition of QTS brings the total value of closed and pending M&A data center deals to more than $23 billion in 2021.

With the explosion of data being generated and processed, along with the boom in enterprise and cloud markets, data centers are becoming a hot ticket in the M&A arena particularly for private equity and global financial investment firms.

IPI partner Matt A’Hearn said the acquisition of DigiPlex—which owns data centers in large Northern European markets such as Olso, Norway; Stockholm, Sweden; and Copenhagen, Denmark—will significantly boost the company’s reach in the region.

“With DigiPlex’s existing scaled presence and deep development expertise, we will significantly expand our hyperscale-focused data center portfolio in Europe, a key region of focus for IPI,” said A’Hearn in a statement. “We are excited to partner with the DigiPlex team to further realize the company’s tremendous growth potential. Utilizing our network and existing businesses, we believe we can together build a platform that meets the rapidly evolving needs of the digital economy in the Nordics and beyond.”

For DigiPlex, the transaction provides capital, expertise and a new partnership to amplify its next stage of growth within the region. Last month, DigiPlex opened a third data center supporting 3MW inside its Fetsund campus in Norway.

The financial terms of the deal were not disclosed. The transaction is expected to close in the third quarter of 2021 with IPI acquiring 100 percent ownership of all DigiPlex Group companies.

IPI’s data center portfolio leases over 480 megawatts with capacity for more than 880 MW. IPI is co-sponsored by Iconiq Capital and is an affiliate of private equity firm Iron Point Partners.